Zynga, Inc. (ZNGA - $2.63)* BUY San Francisco, CA Price Target : $3.50 January 12, 2017

Stock Data Operating Data Closing Price On Report Date $2.63 Revenue in $000 2016 2017E 52-Week Range $1.78-$3.08 1Q $186,721A$ 189,226 ADTV (10day) 9,000,000 2Q $181,735A$ 189,445 Market Cap ($000) $2,320,733 3Q $182,424A$ 196,884 Earnings Data 4Q$ 185,898 $ 207,608 December FYE 2016* 2017E FY$ 736,778 $ 783,163 1Q$ (0.03) $ (0.01) EBITDA in $000 2Q$ (0.01) $ (0.01) 1Q $16,035A$ 27,010 3Q$ (0.05) $ (0.02) 2Q $18,647A$ 29,761 4Q$ (0.03) $ (0.02) 3Q $3,580A$ 20,607 FY$ (0.11) $ (0.06) 4Q$ 12,969 $ 28,979 *4Q16E FY$ 51,231 $ 106,357

The WORD is CASHFLOW

We believe that the common stock of Zynga Inc. (ZNGA) is undervalued, perhaps materially, at current trading levels. The stock has performed poorly for the last several years, but we believe that a new CFO and the fact that the company has finally attained consistent positive free cash flow could be the catalysts that propel the stock forward. We believe the common stock is worth at least $3.50 per share, and could be valued significantly higher in an M&A transaction.

• Compelling Opportunity in Mobile Gaming. The mobile gaming space is an infant industry, which has a bright long-term future. ZNGA is a veteran player in a rapidly evolving space. The company has established a solid portfolio of games with a broad mix that appeal to a wide variety of mobile gamers. ZNGA has a bright future, either on a stand-alone basis, or as part of a larger company. • Positive Cash Flow Should be a Catalyst. ZNGA has generated positive operating cash flow in in each of the last four quarters and we expect operating cash flow to steadily grow going forward. The company also reports over $18 million in free cash flow in the first three quarters of FY16. • New CFO Likely to Rationalize Expenses, Growing Free Cash Flow. New CFO Gerard Griffin joins ZNGA after 10 years at Electronic Arts (NASDAQ: EA), and has vowed to closely examine each expense and we expect to see some rationalization. A $100 million expense reduction goal has been discussed. • Share Repurchase Program Should Stabilize Stock. The company has announced a $200 million share repurchase program, which should help stabilize the price of the equity while investors wait for free cash flow to drive it higher. • Valuation Implies Strong Possible Returns on Equity. We value ZNGA at a blended average of 16.0x our projected FY17 EBITDA of $106.3 million and 3.4x projected FY17 revenue of $783.1 million, which provides an average enterprise value of $3.14 billion. This valuation implies a 12-month price target for the company’s common stock of $3.50, which offers a potential return in excess of 30% if the stock trades to our price target over the next 12 months. David P. Marsh, CFA 410-299-3017 [email protected]

Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021 Company Description: Zynga Inc. (ZNGA) is a leading provider of social game services for mobile devices and social networking sites such as Facebook. Their games are free to play, but offer in app purchases, which is one of ZNGA’s two revenue streams. The other primary revenue stream comes from third party advertising within the company’s games.

The company offers a wide variety of games in an attempt to appeal to appeal to the broadest possible audience of mobile gamers. Slot machine apps are their largest revenue producer, followed by Farmville and Zynga Poker. Possibly the company’s best known title, Words with Friends, generates less than 1% of overall revenue, but has certainly seen an uptick in advertising spend recently.

The following images are logos for some of the company’s featured games:

The company’s most recent release, Dawn of Titans, created by the recently acquired NaturalMotion Limited, is in the action strategy category. It is an interactive game that facilitates player versus player battles and team competition. These titles usually drive substantial in game player spending if they successfully attract a substantial enough audience. Early reviews of the game seem quite positive, with an average rating of 4.5 out of 5 stars across 4,548 reviews in the iOS App Store.

In total, the company currently offers gamers 31 titles across four broadly defined categories. Social Casino games are the company’s largest grossing category and include Hit it Rich Slots, Spin it Rich Slots, Wizard of Oz Slots, Willy Wonka Slots, and Zynga Poker. Action strategy games include the aforementioned Dawn of Titans, CSR Racing 2, and Empires and Allies. Casual games include possibly the company’s best known title, Words with Friends, as well as Chess with Friends, and Wizard of Oz: Magic Match. The final category, termed Invest Express , includes all of the Farmville titles.

David P. Marsh, CFA 410-299-3017 [email protected]

Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021 Customers: The company has operating agreements with Apple, Google and Facebook, and these three operating platforms serve as the medium through which the company acquires both gaming and advertising customers. The majority of the company’s revenues come from individual gaming customers, spending real money on in app game purchases. The collective slot machine titles accounted for 35% of revenue in 3Q16, followed by the Farmville titles at 21%, and Zynga Poker at 19%. No other title generated more than 10% of revenue.

Competition: The mobile gaming segment is still a relatively young industry, since smart phones have essentially existed for less than a decade. But the segment is evolving rapidly. ZNGA is an established veteran competitor in this industry.

The company considers principal competitors to include DeNA Co. Ltd. (Japan), Electronic Arts Inc., Gameloft SA, GREE International, Inc., Glu Mobile Inc. (NASDAQ: GLUU), King.com Inc. (now owned by Activision Blizzard), Rovio Mobile Ltd., Supercell Inc., GungHo Online Entertainment, Inc., Kabam, Activision Blizzard, Inc. (NASDAQ: ATVI), Riot Games, and The Walt Disney Company.

Certain of these competitors are material threats, due to their larger size and substantial financial resources. However, they also represent potential acquirers, in a space that has already seen substantial consolidation.

Financial Results First 3Q FY16: Revenues down 4.8% Versus First 3Q FY15. ZNGA generated total revenue of $550.8 million in the first nine months of FY16, which represents a 4.8% decline versus revenues of $578.9 million in the first nine months of FY15. Online game revenue was down 11.7% year-over-year, but advertising and other revenues were actually up 22% year-over-year.

EBITDA Declines 51%. We calculate EBITDA of $38.3 million in the first 3Q of FY16, which is about 51% lower than the $78.3 million we estimate was generated in the first 3Q of FY15. However, if we exclude the impacts of contingent consideration fair value adjustments related to acquisitions, EBITDA was only down 18% year-over-year. We expect the noise related to the acquisition earn out to work itself out of this calculation in short order and expect EBITDA to grow with expense rationalizations in the very near term.

Positive Free Cash Flow. ZNGA has generated positive operating cash flow in each of the last four quarters and positive free cash flow in each of the last four quarters as well, albeit modest amounts in some of those periods. The company has generated approximately $18.4 million in free cash flow in the first 3Q of FY16, and we expect that tally to grow in 4Q.

David P. Marsh, CFA 410-299-3017 [email protected]

Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021 4Q16 and FY17 Outlook: The company’s 4Q16 results are expected to show sequential improvement versus 3Q16, and we are modeling steady growth in revenue and meaningful growth in EBITDA for FY17.

Revenue Expected to Rise 1.9% sequentially in 4Q16 and 6.3% in FY17. We are modeling 4Q16 revenues up 1.9% sequentially to $185.9 million versus $182.4 million in 3Q16. For FY17 we are modeling revenues of $783.2 million, which would be up 6.3% versus our FY16 forecast.

EBITDA expected to grow 262% sequentially in 4Q16 and 108% in FY17. We expect the company to generate $13.0 million in EBITDA in 4Q16, which would be up 262% sequentially versus the $3.6 million in EBITDA generated in 3Q16. For FY17, we are modeling $106.4 million in EBITDA, which would be up 108% year-over-year, versus the $51.2 million in EBITDA we have modeled for FY16. We expect that revenue growth, coupled with expense rationalization as a percentage of revenue will drive the significant growth in EBITDA. We also expect that contingent consideration fair value adjustments related to prior acquisitions will fall out of the EBITDA calculation going forward, as acquired businesses are paid their final earn out payments and results are fully integrated into ZNGA’s bottom line.

FCF Expected to Grow Significantly in FY17. With higher EBITDA and rational capital spending, we believe pre-tax FCF could grow to approximately $83 million in FY17. EPS may continue to be “on the come” for the company, as a significant portion of compensation continues to be in the form of equity based awards. However, we believe that it is likely that the company could be positioned to generate positive EPS by the end of FY17.

Valuation: Going-concern analysis. Unfortunately, there are few publicly traded domestic competitors to use as good comparables for valuation purposes. One small, publicly- traded competitor (Glu Mobile Inc.) doesn’t even generate positive EBITDA, which leaves just two publicly-traded, pure play gaming competitors to use as comparables – Electronic Arts and Activision Blizzard. While ZNGA cites Disney as a competitor, we don’t believe it to be a good comp, given its vast portfolio of businesses and modest percentage of revenues derived from gaming. Our comparable company analysis, as displayed in the table below, revealed that the public equity of the two viable comparable companies trades at an average enterprise value to EBITDA multiple of 12x projected FY17 EBITDA, and an average price to revenue multiple of 4.3x projected FY17 revenue. We have included GLUU’s metrics in the table for illustrative purposes only. Their numbers are not included in the comparable average multiple calculation.

David P. Marsh, CFA 410-299-3017 [email protected]

Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021 ($MMs) GLUU EA ATVI Electronic Activision GLU Mobile Arts Blizzard

Cash and Short-term Investments 161.7 3,266.0 4,029.0 Debt (book value) - 990.0 6,362.0 Equity Market Cap 290.9 23,789.0 28,375.4 Minority/Noncontrolling Interest - - - Enterprise Value 129.2 21,513.0 30,708.4

FY17(E) Revenues 216.0 5,254.0 6,805.0 FY17(E) EBITDA (8.0) 1,815.0 2,529.0 FY17(E) EBITDA Margin -4% 35% 37% EV/FY17 Revenue 0.60x 4.09x 4.51x EV / FY17 EBITDA -16.16x 11.85x 12.14x Avg EV / FY17 Revenue of Comps 4.30x Avg EV / FY17 EBITDA of Comps 12.00x Source: Company Reports and Analyst Consensus Estimates

We value ZNGA at a blended average of 16.0x projected FY17 EBITDA of $106.3 million and 3.4x projected FY17 revenue of $783.1 million. Our EBITDA multiple represents a 33% premium to the peer group average multiple due to the fact that we expect ZNGA to grow EBITDA at a substantially higher rate (108%) in FY17 than the analyst consensus average growth rate for the peers (7.5%). Our revenue multiple of 3.4% represents a 21% discount to the average revenue multiple of the peer group, due to the fact that ZNGA is a substantially smaller company than the peers. While the revenue multiple may appear to be high, consider the average revenue multiple of the comparables and the fact that ATVI’s acquisition of King took place at approximately 3.0x revenue.

We add to this total cash on the balance sheet at September 30, 2016, and add the free cash flow we expect the company to generate through the balance of FY16 and FY17 to arrive at an average enterprise value for ZNGA of $3.14 billion. This results in an estimated average value of $3.50 per share. The chart below details these calculations and provides an accompanying sensitivity analysis.

David P. Marsh, CFA 410-299-3017 [email protected]

Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021 Going Concern Analysis: ($000) EBITDA MULTIPLE 299% 13.0 14.0 15.0 16.0 17.0 18.0 19.0 Projected FY17 EBITDA 106,357 70,000 $ 2.10 $ 2.18 $ 2.26 $ 2.34 $ 2.42 $ 2.49 $ 2.57 Multiple 16.0 80,000 $ 2.25 $ 2.34 $ 2.43 $ 2.52 $ 2.61 $ 2.70 $ 2.79 Subtotal 1,701,718 E 90,000 $ 2.39 $ 2.49 $ 2.60 $ 2.70 $ 2.80 $ 2.90 $ 3.00 Cash & Investments 866,319 B 100,000 $ 2.54 $ 2.65 $ 2.76 $ 2.88 $ 2.99 $ 3.10 $ 3.21 Projected FCF thru FY17 91,655 I 106,357 $ 2.63 $ 2.75 $ 2.87 $ 2.99 $ 3.11 $ 3.23 $ 3.35 Enterprise Value 2,659,692 T 120,000 $ 2.83 $ 2.97 $ 3.10 $ 3.24 $ 3.37 $ 3.51 $ 3.64 Debt - D 130,000 $ 2.98 $ 3.12 $ 3.27 $ 3.42 $ 3.56 $ 3.71 $ 3.86 Residual Value 2,659,692 A 140,000 $ 3.12 $ 3.28 $ 3.44 $ 3.60 $ 3.75 $ 3.91 $ 4.07 Shares Out 889,000 150,000 $ 3.27 $ 3.44 $ 3.61 $ 3.78 $ 3.95 $ 4.11 $ 4.28 Value per share $ 2.99 160,000 $ 3.42 $ 3.60 $ 3.78 $ 3.96 $ 4.14 $ 4.32 $ 4.50 170,000 $ 3.56 $ 3.75 $ 3.95 $ 4.14 $ 4.33 $ 4.52 $ 4.71 180,000 $ 3.71 $ 3.91 $ 4.11 $ 4.32 $ 4.52 $ 4.72 $ 4.92 Source: Company reports and DMarsh estimates.

Going Concern Analysis: ($000) 407% 2.0 2.5 3.0 3.4 4.0 4.5 5.0 Projected FY17 Revenue 783,163 675,000 $ 2.60 $ 2.98 $ 3.36 $ 3.66 $ 4.11 $ 4.49 $ 4.87 Multiple 3.4 700,000 $ 2.65 $ 3.05 $ 3.44 $ 3.75 $ 4.23 $ 4.62 $ 5.01 Subtotal 2,662,754 E 725,000 $ 2.71 $ 3.12 $ 3.52 $ 3.85 $ 4.34 $ 4.75 $ 5.16 Cash & Investments 866,319 B 750,000 $ 2.76 $ 3.19 $ 3.61 $ 3.95 $ 4.45 $ 4.87 $ 5.30 Cash & Investments 91,655 I 783,163 $ 2.84 $ 3.28 $ 3.72 $ 4.07 $ 4.60 $ 5.04 $ 5.48 Enterprise Value 3,620,728 T 800,000 $ 2.88 $ 3.33 $ 3.78 $ 4.14 $ 4.68 $ 5.13 $ 5.58 Debt - D 825,000 $ 2.93 $ 3.40 $ 3.86 $ 4.23 $ 4.79 $ 5.25 $ 5.72 Residual Value 3,620,728 A 850,000 $ 2.99 $ 3.47 $ 3.95 $ 4.33 $ 4.90 $ 5.38 $ 5.86 Shares Out 889,000 875,000 $ 3.05 $ 3.54 $ 4.03 $ 4.42 $ 5.01 $ 5.51 $ 6.00 Value per share $ 4.07 900,000 $ 3.10 $ 3.61 $ 4.11 $ 4.52 $ 5.13 $ 5.63 $ 6.14 925,000 $ 3.16 $ 3.68 $ 4.20 $ 4.62 $ 5.24 $ 5.76 $ 6.28 950,000 $ 3.21 $ 3.75 $ 4.28 $ 4.71 $ 5.35 $ 5.89 $ 6.42 Source: Company reports and DMarsh estimates.

Average Enterprise Value$ 3,140,210 Average Value Per Share$ 3.53

Management: Frank Gibeau, CEO, age 47. Frank Gibeau was appointed CEO of ZNGA in March, 2016. He has over 25 years experience in the interactive gaming space. He spent over two decades at Electronic Arts, where he most recently led strategy, product development and publishing for the company’s mobile games business.

Gerard Griffin, CFO, age 49. Gerard Griffin was appointed CFO of ZNGA in September, 2016. He spent over ten years at Electronic Arts, most recently serving as a Senior Vice President on EA’s business finance team.

Summary: We believe that ZNGA is undervalued at current trading levels, and that expense rationalization driven by a new CFO and rising free cash flow in the coming quarters will rally stock materially. An investment in the common equity could return over 30% if the common stock trades to our 12-month price target.

*Disclosure: The author of this report owns the subject security.

David P. Marsh, CFA 410-299-3017 [email protected]

Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021 Zynga Inc. (ZNGA) David Marsh, CFA, (410)-299-3017 1/10/17

(000$s) FY14 1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 4Q16E FY16E 1Q17E 2Q17E 3Q17E 4Q17E FY17E 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 12/31/15 3/31/16 6/30/16 9/30/16 12/31/16 12/31/16 3/31/17 6/30/17 9/30/17 12/31/17 12/31/17 Online Game 537,619 147,963 162,161 151,168 129,463 590,755 137,057 135,823 134,254 132,911 540,045 137,563 140,315 143,822 145,261 566,961 Advertising and Other 152,791 35,330 37,757 44,569 56,306 173,962 49,664 45,912 48,170 52,987 196,733 51,662 49,131 53,061 62,347 216,202 Total Revenues 690,410 183,293 199,918 195,737 185,769 764,717 186,721 181,735 182,424 185,898 736,778 189,226 189,445 196,884 207,608 783,163 Total Cost of product development and content 213,570 57,622 57,779 57,187 63,397 235,985 57,139 56,103 62,675 59,488 235,405 56,768 56,834 63,003 60,206 236,810 Gross Margin 476,840 125,671 142,139 138,550 122,372 528,732 129,582 125,632 119,749 126,411 501,374 132,458 132,612 133,881 147,402 546,352 Operating expenses R&D 396,553 107,520 90,896 78,416 85,099 361,931 87,737 66,233 73,913 81,795 309,678 78,529 77,673 76,785 85,119 318,105 Sales & Marketing 157,364 31,839 41,119 43,549 53,066 169,573 46,344 40,631 49,802 51,122 187,899 43,522 41,678 51,190 53,978 190,368 G&A 167,664 40,381 37,805 25,765 39,333 143,284 22,384 25,374 21,656 23,237 92,651 22,707 22,733 23,626 25,951 95,018 Intangible impairment ------20,677 - 20,677 - - - - - Total operating expenses 721,581 179,740 169,820 147,730 177,498 674,788 156,465 132,238 166,048 156,155 610,906 144,758 142,084 151,601 165,048 603,491 Income (loss) from operations (244,741) (54,069) (27,681) (9,180) (55,126) (146,056) (26,883) (6,606) (46,299) (29,744) (109,532) (12,300) (9,472) (17,720) (17,647) (57,138) Interest Income 3,266 794 605 566 603 2,568 705 761 800 320 2,586 330 346 363 382 1,421 Other Income (Expense) 8,248 8,359 1,199 2,285 1,463 13,306 2,100 1,905 980 1,078 6,063 755 604 543 489 2,391 Income Before Taxes (233,227) (44,916) (25,877) (6,329) (53,060) (130,182) (24,078) (3,940) (44,519) (28,346) (100,883) (11,215) (8,523) (16,602) (16,565) (52,905) Income tax provision 7,327 (1,580) (991) 9,381 1,862 8,672 (2,480) (506) 2,782 1,417 1,213 561 426 830 828 2,645 Net Income (loss) (225,900) (46,496) (26,868) 3,052 (51,198) (121,510) (26,558) (4,446) (41,737) (26,928) (99,669) (10,655) (8,096) (15,772) (15,737) (50,260) Earnings Per Share (GAAP basis) Basic EPS (continuing ops)$ (0.26) $ (0.05) $ (0.03) $ 0.00 $ (0.06) $ (0.13) $ (0.03) $ (0.01) $ (0.05) $ (0.03) $ (0.11) $ (0.01) $ (0.01) $ (0.02) $ (0.02) $ (0.06) Diluted EPS (continuing ops & adj.)$ (0.26) $ (0.05) $ (0.03) $ 0.00 $ (0.06) $ (0.13) $ (0.03) $ (0.01) $ (0.05) $ (0.03) $ (0.11) $ (0.01) $ (0.01) $ (0.02) $ (0.02) $ (0.06) Shares Outstanding Basic 874,509 898,344 911,699 921,116 922,540 913,511 871,093 873,393 882,408 889,000 878,974 891,223 895,679 904,635 913,682 901,305 Diluted 874,509 898,344 911,699 940,032 922,540 913,511 871,093 873,393 882,408 889,000 878,974 891,223 895,679 904,635 913,682 901,305 Margin Analysis Gross Margin 69.07% 68.56% 71.10% 70.78% 65.87% 69.14% 69.40% 69.13% 65.64% 68.00% 68.05% 70.00% 70.00% 68.00% 71.00% 69.76% Operating Margin -35.45% -29.50% -13.85% -4.69% -29.67% -19.10% -14.40% -3.63% -25.38% -16.00% -14.87% -6.50% -5.00% -9.00% -8.50% -7.30% EBITDA Margin 4.46% 9.81% 13.21% 17.30% 2.86% 10.93% 8.59% 10.26% 1.96% 6.98% 6.95% 14.27% 15.71% 10.47% 13.96% 13.58% EBITDA Analysis Operating Income (244,741) (54,069) (27,681) (9,180) (55,126) (146,056) (26,883) (6,606) (46,299) (29,744) (109,532) (12,300) (9,472) (17,720) (17,647) (57,138) Depreciation & Amortization 82,894 17,722 13,340 11,287 11,966 54,315 10,812 10,835 10,511 10,406 42,564 10,926 10,817 10,763 10,709 43,215 Intangible impairment charges ------20,677 - 20,677 - - - - - Stock-based Comp 129,233 41,462 27,905 30,436 31,772 131,575 29,608 26,899 24,475 32,307 113,289 28,384 28,417 27,564 35,916 120,281 Acquisition Related Exps 6,425 - - 895 249 1,144 - 199 75 - 274 - - - - - Contingent Consideration Fair Value Adj 32,700 9,400 - - (3,288) 6,112 2,030 (14,390) (5,810) - (18,170) - - - - - Restructuring charges 24,281 3,461 12,855 416 19,748 36,480 468 1,710 (49) - 2,129 - - - - - EBITDA 30,792 17,976 26,419 33,854 5,321 83,570 16,035 18,647 3,580 12,969 51,231 27,010 29,761 20,607 28,979 106,357 Cash Flow Analysis EBITDA 30,792 17,976 26,419 33,854 5,321 83,570 16,035 18,647 3,580 12,969 51,231 27,010 29,761 20,607 28,979 106,357 Capital Expenditures (including capitalized softw are) 401,612 2,112 3,127 21,631 985 27,855 15,154 3,013 22,084 4,520 44,771 9,039 5,423 4,339 4,773 23,574 Proceeds from Asset Sales 5,059 - - 750 - 11,321 398 1,179 1,458 - 3,035 - - - - - Interest ------211 211 422 Free Cash Flow (365,761) 15,864 23,292 12,973 4,336 67,036 1,279 16,813 (17,046) 8,450 9,496 17,971 24,338 16,479 24,417 83,206 Senior Debt/LTM EBITDA - Total Debt/LTM EBITDA - Balance Sheet 12/31/14 12/31/15 3/31/16 6/30/16 9/30/16 9/30/16 Cash & Equivalents 131,303 742,217 731,451 828,388 866,319 Liquidity Cash 866,319 Marketable Secs 785,221 245,033 126,010 40,050 4,501 Mktable Secs - Accounts Receivable 89,611 79,610 72,393 65,074 72,351 Credit Facility Income Tax Receivable 3,304 5,233 4,638 1,949 1,010 866,319 Restricted Cash 48,047 209 2,082 2,081 2,082 Prepaid & Other Current 25,453 39,988 41,065 28,135 27,718 Current Assets 1,082,939 1,112,290 977,639 965,677 973,981 LT Marketable Secs 231,385 - - - - Goodw ill 650,778 657,671 652,436 627,760 633,913 Intangibles, net 66,861 64,016 58,406 50,263 32,309 PP&E, net 297,919 273,221 271,590 269,769 269,285 Restricted Cash - 986 250 250 3,050 Other Assets 18,911 16,446 17,298 30,694 28,021 Total Assets 2,348,793 2,124,630 1,977,619 1,944,413 1,940,559

A/P 14,965 29,676 13,398 11,900 16,045 Other Current Liabilities 164,150 77,691 61,107 62,199 64,871 Deferred Revenue 189,923 128,839 123,920 116,765 130,904 Current Portion of LTD Current liabilities 369,038 236,206 198,425 190,864 211,820 Deferred Revenue 3,882 204 27 100 260 Deferred Taxes 5,323 6,026 6,461 5,962 5,243 Notes: Other Liabilities 74,858 95,293 95,928 79,531 76,391 Total liabilities 453,101 337,729 300,841 276,457 293,714 Stockholders' equity 1,895,692 1,786,901 1,676,778 1,667,956 1,646,845 Source: Company reports and author estimates. 2,348,793 2,124,630 1,977,619 1,944,413 1,940,559

David P. Marsh, CFA 410-299-3017 [email protected]

Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021 About the Author

David P. Marsh, CFA is a veteran Wall Street analyst with over 10 years of sell-side research experience. He served over 2 years as a Managing Director in the investment research group at Odeon Capital and over 6 years as a Sr. Vice President in the investment research department at FBR & Company (f/k/a Friedman, Billings, Ramsey & Co.). He has experience covering equity and fixed income securities, including high yield, stressed and distressed debt and leveraged loans.

Please feel free to contact Mr. Marsh at (410)-299-3017 or [email protected] .

David P. Marsh, CFA 410-299-3017 [email protected]

Downloaded from www.hvst.com by IP address 192.168.160.10 on 09/29/2021